[April 25, 2018] |
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Dassault Systèmes Delivers Broad-based Growth in First Quarter with 3DEXPERIENCE Software Revenue Up Strongly
Regulatory News:
Dassault
Systèmes (Euronext Paris: #13065, DSY.PA), announces IFRS unaudited
financial results for the first quarter ended March 31, 2018. These
results were reviewed by the Company's Board of Directors on April 24,
2018. The Company has adopted IFRS 15 as of January 1, 2018. This press
release includes 2018 first quarter results under IFRS 15 as well as
under the prior IAS 18 standard and includes a summary explanation of
the major differences for the Company. In addition, this press release
also includes financial information on a non-IFRS basis (both IFRS 15
and IAS 18) with reconciliations included in the Appendix to this
communication.
Summary First Quarter 2018 Highlights and Financial Summary
(Unaudited, with references to IAS 18 financial information)
-
First Quarter results well aligned with Dassault Systèmes' financial
objectives
-
Licenses and other software up 14% organically at constant currency
(IAS 18)
-
3DEXPERIENCE software revenue up 26% at constant currency (IAS
18)
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Broad-based growth in a majority of industries and geographies
-
3DEXPERIENCE cloud activity up significantly
-
Strong Cash flow from operations, up 17% to €407 million (IAS 18)
-
DS confirms 2018 FY IAS 18 financial objectives: Non-IFRS revenue
growth of 8% to 9% at constant currency, non-IFRS EPS up 6% to 8% or
at constant currency about 11% to 13%
-
Board of Directors proposes 9% increase in annual dividend for the
2017 fiscal year
In millions of Euros, except per share data
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IFRS
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|
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IFRS15 Basis Q118
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Difference
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IAS 18 Basis Q118
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|
IAS 18 Basis Q117
|
|
IAS 18 Change
|
|
IAS 18Change in cc*
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Total Revenue
|
|
818,7
|
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(49,4)
|
|
769,3
|
|
759,8
|
|
1%
|
|
10%
|
Software Revenue
|
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735,1
|
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(49,4)
|
|
685,7
|
|
670,2
|
|
2%
|
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11%
|
Services Revenue
|
|
83,5
|
|
0,0
|
|
83,5
|
|
89,6
|
|
-7%
|
|
0%
|
Operating Margin
|
|
21,8%
|
|
-5,0pts
|
|
16,8%
|
|
15,7%
|
|
|
|
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EPS
|
|
0,53
|
|
(0,14)
|
|
0,39
|
|
0,33
|
|
18%
|
|
33%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions of Euros, except per share data
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|
Non-IFRS
|
|
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IFRS15 Basis Q118
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Difference
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IAS 18 Basis Q118
|
|
IAS 18 Basis Q117
|
|
IAS 18 Change
|
|
IAS 18Change in cc*
|
Total Revenue
|
|
820,6
|
|
(49,4)
|
|
771,2
|
|
765,7
|
|
1%
|
|
9%
|
Software Revenue
|
|
737,0
|
|
(49,4)
|
|
687,6
|
|
676,1
|
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2%
|
|
10%
|
Services Revenue
|
|
83,5
|
|
0,0
|
|
83,5
|
|
89,6
|
|
-7%
|
|
0%
|
Operating Margin
|
|
31,4%
|
|
-4,4pts
|
|
27,0%
|
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26,2%
|
|
|
|
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EPS
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|
0,72
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(0,13)
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|
0,59
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|
0,53
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11%
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26%
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*In constant currencies.
Bernard Charlès, Dassault Systèmes' Vice Chairman and Chief Executive
Officer commented, "We are experiencing a global Industry
Renaissance, bringing new ways, real and virtual, of inventing,
learning, producing and trading. The leading businesses of the future
will be those that empower the workforce of the future and their value
networks with knowledge and know-how to deliver new categories of
sustainable solutions. Digital experience platforms are the
infrastructures of the 21st century: they have transformed retail,
transportation and hospitality services; the industrial world is next.
The 3DEXPERIENCE Marketplace positions Dassault Systèmes as a
catalyst of this transformation.
"The sharp increase in 3DEXPERIENCE licenses revenue proves
that our 3DEXPERIENCE platform opens up whole new market
opportunities. It brings unparalleled added value for customers in terms
of leadership and innovation as the platform is both an operating
system, as shown this quarter by Gilead Sciences and a business model.
Our Cloud offer represents for large and smaller companies, like recent
new engagements with Kärcher and EVelozcity, the possibility to reduce
to zero the distance to their own clients. For the SOLIDWORKS users'
community it represents the opportunity to benefit from a wide range of
marketplace services."
2018 First Quarter Financial Summary
(Unaudited)
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|
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Software Revenue in millions of Euros
|
|
IFRS
|
|
|
IFRS15 Basis Q118
|
|
Difference
|
|
IAS 18 Basis Q118
|
|
IAS 18 Basis Q117
|
|
IAS 18 Change
|
|
IAS 18Change in cc*
|
Total Software Revenue
|
|
735.1
|
|
(49.4)
|
|
685.7
|
|
670.2
|
|
2%
|
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11%
|
- Licenses and Other software
|
|
179.1
|
|
1.4
|
|
180.5
|
|
173.0
|
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4%
|
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14%
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- Recurring software
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|
556.0
|
|
(50.8)
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505.3
|
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497.2
|
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2%
|
|
10%
|
Americas total software
|
|
209.6
|
|
(13.8)
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195.8
|
|
201.3
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-3%
|
|
12%
|
Europe total software
|
|
325.0
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(36.1)
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288.9
|
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280.7
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3%
|
|
7%
|
Asia total software
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|
200.6
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0.4
|
|
201.0
|
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188.2
|
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7%
|
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16%
|
|
|
|
|
|
|
|
|
|
|
|
|
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Software Revenue in millions of Euros
|
|
Non-IFRS
|
|
|
IFRS15 Basis Q118
|
|
Difference
|
|
IAS 18 Basis Q118
|
|
IAS 18 Basis Q117
|
|
IAS 18 Change
|
|
IAS 18Change in cc*
|
Total Software Revenue
|
|
737.0
|
|
(49.4)
|
|
687.6
|
|
676.1
|
|
2%
|
|
10%
|
- Licenses and Other software
|
|
179.1
|
|
1.4
|
|
180.5
|
|
173.0
|
|
4%
|
|
14%
|
- Recurring software
|
|
557.9
|
|
(50.8)
|
|
507.2
|
|
503.2
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|
1%
|
|
9%
|
Americas total software
|
|
210.5
|
|
(13.8)
|
|
196.7
|
|
203.2
|
|
-3%
|
|
11%
|
Europe total software
|
|
325.3
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|
(36.0)
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|
289.3
|
|
284.4
|
|
2%
|
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6%
|
Asia total software
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|
201.2
|
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0.4
|
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201.6
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188.6
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7%
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16%
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*In constant currencies
First Quarter 2018 versus 2017 Financial Comparisons on an IAS 18
Basis ("IAS 18 IFRS and IAS 18 non-IFRS")
-
On an IAS 18 basis, total revenue increased 10% (IFRS) and 9%
(non-IFRS). First quarter financial results include EXA Corporation,
an acquisition completed on November 17, 2017. Excluding acquisitions,
IAS 18 non-IFRS total revenue increased 7% and software revenue
increased 8%. (All growth rates are in constant currencies.)
-
On an IAS 18 basis and in constant currencies: Software revenue
increased 11% (IFRS) and 10% (non-IFRS). Licenses and other software
revenue grew 14% (IFRS and non-IFRS), with double-digit growth for
CATIA, SOLIDWORKS, ENOVIA, SIMULIA, DELMIA and GEOVIA. Non-IFRS
Recurring revenue, comprised of Subscription and Support revenue,
represented 74% of non-IFRS software revenue. Non-IFRS Recurring
revenue increased 9% reflecting strong growth in Subscription revenue,
including the acquisition of EXA, and continued strong Support renewal
rates in all three regions. (In the Company's financial statements the
line item 'Periodic and Maintenance Revenue' has been updated to
'Subscription and Support Revenue' commencing with the 2018 First
Quarter and combined represent the Company's 'Recurring Revenue'.)
-
IAS 18 non-IFRS software revenue increased double-digits in constant
currencies across Transportation & Mobility, Aerospace & Defense,
Industrial Equipment, Consumer Goods & Retail, Architecture,
Engineering & Construction and Natural Resources. The Company noted an
improving dynamic in Life Sciences.
-
On a regional and IAS 18 basis: Asia non-IFRS software revenue
increased 16% on broad-based growth in China, India and South Korea
and strong improvement in Japan. In Europe non-IFRS software revenue
increased 6% with notable performances in Western and Southern Europe
as well as Russia. In the Americas, non-IFRS software revenue
increased 11% on North America growth dynamics. High Growth Countries
non-IFRS software revenue increased 12% on strong growth in a number
of countries. (All growth rates are in constant currencies.)
-
On an IAS 18 basis, 3DEXPERIENCE software revenue was up 26%
during the 2018 first quarter, with Go Live implementations continuing
and new 3DEXPERIENCE investments commencing with multiple large
customers. More specifically, the Company noted new wins including in
Electric Vehicles where it has the leading industry presence and in
Industrial Equipment, Marine & Offshore and High Tech, as well as 3DEXPERIENCE
programs ramping with large clients in Transportation & Mobility, in
Aerospace & Defense as well as in Consumer Packaged Goods & Retail. 3DEXPERIENCE
cloud activity was up significantly during the first quarter.
-
Services revenue of €84 million was unchanged in constant currencies
(IAS 18 IFRS and non-IFRS) on a mixed performance. The Company noted
strong growth in 3DEXPERIENCE services activity.
-
IAS 18 IFRS operating income increased 8%. IAS 18 non-IFRS operating
income totaled €208.3 million, representing an increase of 4% as
reported but 18% in constant currencies. The IAS 18 non-IFRS operating
margin increased 80 basis points to 27.0% in the first quarter,
compared to 26.2% in the year-ago period, reflecting underlying
organic improvement of 240 basis points, offset by negative currency
effects of 110 basis points and acquisition dilution estimated at 50
basis points.
-
Principally reflecting the U.S. Tax Reform Act of 2017, the Company's
IAS 18 IFRS and non-IFRS effective tax rates decreased to 25.0% and
28.9%, respectively, in the 2018 first quarter compared to 31.8% and
31.9%, respectively, in the year-ago period.
-
IAS 18 non-IFRS financial revenue totaled €5.2 million in the 2018
first quarter, compared to €0.6 million in the year-ago period
principally due to lower currency exchange losses.
-
IAS 18 IFRS diluted net income per share increased 18% or 33% in
constant currencies. IAS 18 non-IFRS diluted net income per share
totaled €0.59, increasing 11% or 26% at constant currency.
Business Outlook
(Discussion on an IAS 18, non-IFRS basis, with revenue growth rates in
constant currencies)
Pascal Daloz, Dassault Systèmes' Executive Vice President, CFO and
Corporate Strategy Officer, commented, "We expected a
strong start to 2018 and are pleased to report that first quarter
results came in well aligned with this objective. Software revenue
increased 10%, with licenses and other software growth of 14% and
recurring software revenue growth of 9% in constant currencies. Earnings
per share increased 11% or 26% excluding strong currency headwinds.
Those good results are also reflected in strong cash flow from
operations, up 17%.
"Importantly, the first quarter results demonstrated the improving
breadth and balance of our financial performance. Our three sales
channels, all major brands and 9 of 12 geos reported strong license
revenue growth in constant currencies. Moreover, looking at total
software performance, we saw a similar pattern of strength across
Transportation & Mobility, Aerospace & Defense, Industrial Equipment,
Consumer Goods & Retail, Architecture, Engineering & Construction and
Natural Resources as well as improvement in Life Sciences.
"For the second quarter, we anticipate a strong performance with
non-IFRS total revenue growth of 8% to 10% and non-IFRS EPS of about
€0.65 to €0.68, representing growth of about 16% to 22% at constant
currency (all on an IAS 18 basis).
"We are reconfirming our 2018 financial objectives with IAS 18
non-IFRS total revenue growth of about 8% to 9% in constant currencies,
a IAS 18 non-IFRS operating margin of 31% to 31.5%, and IAS 18 non-IFRS
earnings per share of €2.83 to €2.88, representing growth of about 11%
to 13% at constant currency.
"In summary, the first quarter well underscores our strategy and
growth drivers at work. We look forward to sharing our perspectives for
the future at our Capital Markets Day on June 15th."
The Company's second quarter and full year 2018 financial objectives are
given in IAS 18 on a non-IFRS basis:
-
Second quarter 2018 IAS 18 non-IFRS total revenue objective of about
€815 to €830 million based upon the exchange rates assumptions below,
growing about 8% to 10% in constant currencies; non-IFRS operating
margin of about 29% to 30%; and non-IFRS EPS of about €0.65 to €0.68,
up 5% to 10%, or about 16% to 22% at constant currency;
-
2018 IAS 18 non-IFRS revenue growth objective of about 8% to 9% in
constant currencies at €3.355 to €3.385 billion (reflecting the
principal 2018 currency exchange rate assumptions below for the US
dollar and Japanese yen as well as the potential impact from
additional currencies representing about 17% of the Company's total
revenue in 2017);
-
2018 IAS 18 non-IFRS operating margin of about 31% to 31.5%, compared
to 32% in 2017, reflecting acquisition dilution and currency headwinds
offset in part by moderate organic improvement at constant currency;
-
2018 IAS 18 non-IFRS EPS of about €2.83 to €2.88, representing a
growth objective of about 6% to 8%, or about 11% to 13% on a constant
currency basis;
-
Objectives are based upon exchange rate assumptions of US$1.25 per
€1.00 for the 2018 second quarter and US$1.20 per €1.00 for the 2018
second half; and JPY135.0 per €1.00 for the 2018 second quarter and
JPY134.5 per €1.00 for full year 2018 before hedging.
These objectives are prepared and communicated only on a non-IFRS basis
and are subject to the cautionary statement set forth below.
The 2018 non-IFRS objectives, which are stated on an IAS 18 basis, set
forth above do not take into account the following accounting elements
and are estimated based upon the 2018 principal currency exchange rates
above: deferred revenue write-downs estimated at approximately €5
million on an IAS 18 basis, share-based compensation expense, including
related social charges, estimated at approximately €78 million and
amortization of acquired intangibles estimated at approximately €160
million. The above objectives also do not include any impact from other
operating income and expense, net principally comprised of acquisition,
integration and restructuring expenses, from one-time items included in
financial revenue and from one-time tax restructuring gains and losses.
Finally, these estimates do not include any new stock option or share
grants, or any new acquisitions or restructurings completed after April
25, 2018.
Cash Flow and Other Financial Highlights Under IAS 18 For
Year-over-Year Comparisons
The Company's net cash flow from operations for the first quarter ended
March 31, 2018 is identical under IFRS 15 in comparison to IAS 18
although some of the line items differ. (See page 19 in the Appendix
to this press release for further details including a reconciliation of
the cash flow statement and balance sheets under IFRS 15 compared to IAS
18 for the quarter and period ended March 31, 2018.)
IAS 18 net operating cash flow increased 17% to €406.9 million for the
quarter ended March 31, 2018, compared to €347.8 million in the 2017
First Quarter on growth in net income and working capital evolution.
Dassault Systèmes' net financial position totaled €1.85 billion at March
31, 2018, compared to €1.46 billion at December 31, 2017, reflecting
cash, cash equivalents and short-term investments of €2.85 billion and
long-term debt of €1.00 billion.
Cash Dividend Recommendation, Annual Shareholders' Meeting Date and
Filing of Regulatory Annual Report
The Board of Directors has scheduled the Annual Shareholders' Meeting
for May 22, 2018 and is recommending a dividend per share equivalent to
€0.58 per share for the fiscal year ended December 31, 2017,
representing an increase of approximately 9% compared to the prior year
€0.53 per share. In addition, as in recent years, it will also be
proposed that each shareholder be granted the option to choose to
receive payment of the dividend in cash or new shares. Shareholders may
choose payment of the dividend in cash or new shares between May 29,
2018 and June 8, 2018, inclusive. Shares will be traded ex-dividend as
of May 29, 2018. Dividends will be made payable as from June 19, 2018.
These recommendations are subject to approval by shareholders at the
Annual Shareholders' Meeting. For further information, see the Company's
2017 Document de Référence filed with the French Autorité des
Marchés Financiers (AMF) on March 21, 2018. The 2017 Document
de Référence and an English language translation of this document
are available on the Company's website.
Summary of Recent Business, Technology and Customer Announcements
Corporate:
During the week of April 16th, the Company
held its annual Design in the Age of Experience Conference in Milano,
Italy. For Dassault Systèmes and its clients, Design is bigger than
aesthetics or products. Design is the start of sustainable experiences
that change lives and helps address key challenges facing society - such
as climate action, dwelling, mobility and healthcare. Designers are at
the focal point, linking form, function, and sometimes 'magic' to
transform how we live, work and play.
Dassault Systèmes Accelerates the Global Industry Renaissance with
Launch of Online Marketplace. On February 1, 2018 the Company officially
launched the 3DEXPERIENCE Marketplace, its online ecosystem for
industrial services and content providers. Fifty digital
manufacturers with more than 500 machines and 30 million components from
600 suppliers will help businesses leverage new ways to innovate. With
the 3DEXPERIENCE Marketplace, Dassault Systèmes brings to the
industrial world an online trading platform as disruptive as the first
retail marketplace.
Customers:
On February 22, 2018 Dassault Systèmes announced that Kärcher, the
world's leading provider of cleaning technology, has adopted the
3DEXPERIENCE platform to digitally transform its existing processes
worldwide and be first to market with efficient, resource-conserving
cleaning systems, products and services. Kärcher will rely on the
"Single Source for Speed" industry solution experience based on the 3DEXPERIENCE
platform. The company can integrate its product development processes,
improve collaboration and knowledge sharing for up to 1,200 employees,
and reduce product development and production costs.
Today's Webcast and Conference Call Information
Today, Wednesday, April 25, 2018, Dassault Systèmes will first host from
London a webcasted meeting at 8:30 AM London time/ 9:30 AM Paris time
and will then host a conference call at 9:00 AM New York time/ 2:00 PM
London time/ 3:00 PM Paris time. The webcasted meeting and conference
call will be available via the Internet by accessing http://www.3ds.com/investors/.
Please go to the website at least 15 minutes prior to the webcast or
conference call to register, download and install any necessary audio
software. The webcast and conference call will be archived for one year.
Additional investor information can be accessed at http://www.3ds.com/investors/
or by calling Dassault Systèmes' Investor Relations at 33.1.61.62.69.24.
Key Investor Relations Events
Annual Meeting of Shareholders: May 22, 2018 Capital Markets Day,
June 15, 2018 Second Quarter 2018 Earnings: July 25, 2018 Third
Quarter 2018 Earnings: October 24, 2018 Fourth Quarter 2018
Earnings: February 6, 2019
Forward-looking Information
Statements herein that are not historical facts but express expectations
or objectives for the future, including but not limited to statements
regarding the Company's non-IFRS financial performance objectives, are
forward-looking statements.
Such forward-looking statements are based on Dassault Systèmes
management's current views and assumptions and involve known and unknown
risks and uncertainties. Actual results or performances may differ
materially from those in such statements due to a range of factors. The
Company's current outlook for 2018 takes into consideration, among other
things, an uncertain global economic environment. In light of the
continuing uncertainties regarding economic, business, social and
geopolitical conditions at the global level, the Company's revenue, net
earnings and cash flows may grow more slowly, whether on an annual or
quarterly basis. While the Company makes every effort to take into
consideration this uncertain macroeconomic outlook, the Company's
business results, however, may not develop as anticipated. Further,
there may be a substantial time lag between an improvement in global
economic and business conditions and an upswing in the Company's
business results. The Company's actual results or performance may also
be materially negatively affected by numerous risks and uncertainties,
as described in the "Risk Factors" section of the 2017 Document de
Référence (Annual Report) filed with the AMF (French Financial
Markets Authority) on March 21, 2018 and also available on the Company's
website www.3ds.com.
In preparing such forward-looking statements, the Company has in
particular assumed an average US dollar to euro exchange rate of US$1.25
per €1.00 for the 2018 second quarter and US$1.20 per €1.00 for the 2018
second half as well as an average Japanese yen to euro exchange rate of
JPY135.0 to €1.00 for the 2018 second quarter and JPY134.5 to €1.00 for
the full year 2018 before hedging; however, currency values fluctuate,
and the Company's results of operations may be significantly affected by
changes in exchange rates.
Non-IFRS Financial Information
Readers are cautioned that the supplemental non-IFRS information
presented in this press release is subject to inherent limitations. It
is not based on any comprehensive set of accounting rules or principles
and should not be considered as a substitute for IFRS measurements.
Also, the Company's supplemental non-IFRS financial information may not
be comparable to similarly titled non-IFRS measures used by other
companies. Further specific limitations for individual non-IFRS
measures, and the reasons for presenting non-IFRS financial information,
are set forth in the Company's 2017 Document de Référence filed
with the AMF on March 21, 2018.
In the tables accompanying this press release the Company sets forth its
supplemental non-IFRS figures for revenue, operating income, operating
margin, net income and diluted earnings per share, which exclude the
effect of adjusting the carrying value of acquired companies' deferred
revenue, share-based compensation expense and related social charges,
the amortization of acquired intangible assets, other operating income
and expense, net, certain one-time items included in financial revenue
and other, net, and the income tax effect of the non-IFRS adjustments
and certain one-time tax effects. The tables also set forth the most
comparable IFRS financial measure and reconciliations of this
information with non-IFRS information.
This press release constitutes the quarterly financial information
required by article L.451-1-2 IV of the French Monetary and Financial
Code (Code Monétaire et Financier).
About Dassault Systèmes
Dassault Systèmes, the 3DEXPERIENCE Company, provides business and
people with virtual universes to imagine sustainable innovations. Its
world-leading solutions transform the way products are designed,
produced, and supported. Dassault Systèmes' collaborative solutions
foster social innovation, expanding possibilities for the virtual world
to improve the real world. The Group brings value to over 220,000
customers of all sizes, in all industries, in more than 140 countries.
For more information, visit www.3ds.com.
3DEXPERIENCE, the Compass logo and the 3DS logo, CATIA, SOLIDWORKS,
ENOVIA, DELMIA, SIMULIA, GEOVIA, EXALEAD, 3DVIA, BIOVIA, NETVIBES and
3DEXCITE are registered trademarks of Dassault Systèmes or its
subsidiaries in the US and/or other countries.
(Tables to Follow)
APPENDIX TABLE OF CONTENTS
(Due to rounding, numbers presented throughout this and other documents
may not add up precisely to the totals provided and percentages may not
precisely reflect the absolute figures.)
Glossary of Definitions
IAS 18
Non-IFRS Financial Information
Condensed consolidated statements of income
Condensed consolidated balance sheets
Condensed consolidated cash flow statements
IFRS - non-IFRS reconciliation
IFRS 15
Reconciliation tables IFRS 15 and IAS 18
Reconciliation P&L IFRS 15 and IAS 18
Reconciliation Balance sheet IFRS 15 and IAS 18
Reconciliation Cash flow IFRS 15 and IAS 18
Non-IFRS Financial Information
Condensed consolidated statements of income
Condensed consolidated balance sheets
Condensed consolidated cash flow statements
IFRS - non-IFRS reconciliation
DASSAULT SYSTEMES
Glossary of Definitions
Information in Constant Currencies
We have followed a long-standing policy of measuring our revenue
performance and setting our revenue objectives exclusive of currency in
order to measure in a transparent manner the underlying level of
improvement in our total revenue and software revenue by type, industry,
region and product lines. We believe it is helpful to evaluate our
growth exclusive of currency impacts, particularly to help understand
revenue trends in our business. Therefore, we provide percentage
increases or decreases in our revenue and EPS (in both IFRS as well as
non-IFRS) to eliminate the effect of changes in currency values,
particularly the U.S. dollar and the Japanese yen, relative to the euro.
When trend information is expressed by us "in constant currencies", the
results of the "prior" period have first been recalculated using the
average exchange rates of the comparable period in the current year, and
then compared with the results of the comparable period in the current
year.
While constant currency calculations are not considered to be an IFRS
measure, we do believe these measures are critical to understanding our
global revenue results and to compare with many of our competitors who
report their financial results in U.S. dollars. Therefore, we are
including this calculation for comparing IFRS revenue figures for
comparable periods as well as for comparing non-IFRS revenue figures for
comparable periods. All constant currency information is provided on an
approximate basis. Unless otherwise indicated, the impact of exchange
rate fluctuations is approximately the same for both the Company's IFRS
and supplemental non-IFRS financial data.
We have followed a long-standing policy of setting our revenue growth
objectives in constant currencies and calculating a reported revenue
range based upon the key currency exchange rate assumptions outlined in
our quarterly earnings reports and in our half-year and annual
regulatory documents. We also set our non-IFRS revenue objectives in
constant currencies in order to provide transparency on our activities
as compared to the impact of currency exchange rates.
Information on Growth excluding acquisitions ("organic growth")
In addition to discussing total growth, we also provide financial
information where we discuss growth excluding acquisitions or growth on
an organic basis as used alternatively. In both cases, growth excluding
acquisitions have been calculated using the following restatements of
the scope of consolidation: for entities entering the consolidation
scope in the current year, subtracting the contribution of the
acquisition from the aggregates of the current year, and for entities
entering the consolidation scope in the previous year, subtracting the
contribution of the acquisition from January 1st of the current year,
until the last day of the month of the current year when the acquisition
was made the previous year.
Information on Industrial Sectors
The Company's global customer base includes companies in 12 industrial
sectors: Transportation & Mobility; Industrial Equipment; Aerospace &
Defense; Financial & Business Services; High-Tech; Life Sciences;
Energy, Process & Utilities; Consumer Goods & Retail; Natural Resources;
Architecture, Engineering & Construction; Consumer Packaged Goods &
Retail and Marine & Offshore. Commencing in 2012 we implemented an
industry go-to-market strategy with the dual objectives of broadening
and deepening our presence in our largest industries as well as
increasing the contribution from a diversified set of industrial
sectors. "Diversification Industries" include: Architecture, Engineering
& Construction; Consumer Goods & Retail; Consumer Packaged Goods &
Retail; Energy, Process & Utilities; Finance Business Services;
High-Tech; Life Sciences; Marine & Offshore; and Natural Resources.
"Core Industries" include: Transportation & Mobility, Industrial
Equipment, Aerospace & Defense and a portion of Business Services.
3DEXPERIENCE Licenses and Software Contribution
To measure the progressive penetration of 3DEXPERIENCE software,
the Company utilizes the following ratios: a) for Licenses revenue, the
Company calculates the percentage contribution by comparing total 3DEXPERIENCE
Licenses revenue to Licenses revenue for all product lines except
SOLIDWORKS and acquisitions ("related Licenses revenue"); and, b) for
software revenue, the Company calculates the percentage contribution by
comparing total 3DEXPERIENCE software revenue to software revenue
for all product lines except SOLIDWORKS and acquisitions ("related
software revenue").
IAS 18
DASSAULT SYSTEMES
NON-IFRS IAS 18 FINANCIAL INFORMATION
(unaudited; in millions of Euros, except per share data, headcount and
exchange rates)
Non-IFRS key figures exclude the effects of adjusting the carrying value
of acquired companies' deferred revenue, share-based compensation
expense and related social charges, amortization of acquired intangible
assets, other operating income and expense, net, certain one-time
financial revenue items and the income tax effects of these non-IFRS
adjustments.
Comparable IFRS financial information and a reconciliation of the IFRS
and non-IFRS measures are set forth in the separate tables within this
Attachment.
In millions of Euros, except per share data and percentages
|
|
Three months ended
|
|
|
|
|
|
|
March 31, 2018
|
|
March 31, 2017
|
|
Change
|
|
Change in cc*
|
Non-IFRS-IAS18 Revenue
|
|
€ 771.2
|
|
€ 765.7
|
|
1%
|
|
9%
|
|
|
|
|
|
|
|
|
|
Non-IFRS-IAS18 Revenue breakdown by activity
|
|
|
|
|
|
|
|
|
Software revenue
|
|
687.6
|
|
676.1
|
|
2%
|
|
10%
|
of which licenses and other software revenue
|
|
180.5
|
|
173.0
|
|
4%
|
|
14%
|
of which subscription and support revenue
|
|
507.2
|
|
503.2
|
|
1%
|
|
9%
|
Services revenue
|
|
83.5
|
|
89.6
|
|
-7%
|
|
0%
|
|
|
|
|
|
|
|
|
|
Non-IFRS-IAS18 software revenue breakdown by product line
|
|
|
|
|
|
|
CATIA software revenue
|
|
236.9
|
|
236.4
|
|
0%
|
|
5%
|
ENOVIA software revenue
|
|
72.9
|
|
73.6
|
|
-1%
|
|
11%
|
SOLIDWORKS software revenue
|
|
173.1
|
|
174.2
|
|
-1%
|
|
13%
|
Other software revenue
|
|
204.7
|
|
191.9
|
|
7%
|
|
14%
|
|
|
|
|
|
|
|
|
|
Non-IFRS-IAS18 Revenue breakdown by geography
|
|
|
|
|
|
|
|
|
Americas
|
|
225.2
|
|
235.8
|
|
-4%
|
|
10%
|
Europe
|
|
326.5
|
|
323.1
|
|
1%
|
|
5%
|
Asia
|
|
219.4
|
|
206.9
|
|
6%
|
|
16%
|
|
|
|
|
|
|
|
|
|
Non-IFRS-IAS18 operating income
|
|
€ 208.3
|
|
€ 200.7
|
|
4%
|
|
|
Non-IFRS-IAS18 operating margin
|
|
27.0%
|
|
26.2%
|
|
|
|
|
Non-IFRS net income attributable to shareholders
|
|
€ 152.2
|
|
€ 135.7
|
|
12%
|
|
|
Non-IFRS-IAS18 diluted net income per share
|
|
€ 0.59
|
|
€ 0.53
|
|
11%
|
|
26%
|
Closing headcount
|
|
16,067
|
|
15,262
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
Average Rate USD per Euro
|
|
1.23
|
|
1.06
|
|
16%
|
|
|
Average Rate JPY per Euro
|
|
133.2
|
|
121.0
|
|
10%
|
|
|
|
|
|
|
|
|
|
|
|
* In constant currencies
IAS 18
DASSAULT SYSTEMES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (IFRS)
(unaudited; in millions of Euros, except per share data)
|
|
|
|
In millions of Euros, except per share data and percentages
|
|
Three months ended
|
|
|
March 31,
|
|
March 31,
|
|
|
2018
|
|
2017
|
Licenses and other software revenue
|
|
180.5
|
|
173.0
|
Subscription and Support revenue
|
|
505.3
|
|
497.2
|
Software revenue
|
|
685.7
|
|
670.2
|
Services revenue
|
|
83.5
|
|
89.6
|
Total Revenue IFRS -IAS18
|
|
€ 769.4
|
|
€ 759.8
|
Cost of software revenue (excluding amortization of acquired
intangibles)
|
|
(40.9)
|
|
(40.4)
|
Cost of services and other revenue
|
|
(79.4)
|
|
(82.8)
|
Research and development
|
|
(152.7)
|
|
(149.7)
|
Marketing and sales
|
|
(253.0)
|
|
(259.8)
|
General and administrative
|
|
(69.7)
|
|
(60.3)
|
Amortization of acquired intangibles
|
|
(41.8)
|
|
(41.2)
|
Other operating income and expense, net
|
|
(2.5)
|
|
(6.1)
|
Total Operating Expenses
|
|
(639.9)
|
|
(640.3)
|
Operating Income
|
|
€ 129.3
|
|
€ 119.5
|
Financial revenue and other, net
|
|
4.7
|
|
7.2
|
Income before income taxes
|
|
134.0
|
|
126.7
|
Income tax expense
|
|
(33.5)
|
|
(40.3)
|
Net Income
|
|
€ 100.6
|
|
€ 86.4
|
Non-controlling interest
|
|
0.3
|
|
(1.4)
|
Net Income attributable to equity holders of the parent
|
|
€ 100.8
|
|
€ 85.0
|
Basic net income per share
|
|
0.39
|
|
0.33
|
Diluted net income per share
|
|
€ 0.39
|
|
€ 0.33
|
Basic weighted average shares outstanding (in millions)
|
|
256.9
|
|
253.8
|
Diluted weighted average shares outstanding (in millions)
|
|
259.3
|
|
257.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, 2018
|
|
|
Change*
|
|
Change in cc**
|
IFRS Revenue IFRS -IAS18
|
|
1%
|
|
10%
|
IFRS Revenue by activity
|
|
|
|
|
Software revenue
|
|
2%
|
|
11%
|
Services revenue
|
|
-7%
|
|
0%
|
IFRS Software Revenue by product line
|
|
|
|
CATIA software revenue
|
|
0%
|
|
5%
|
ENOVIA software revenue
|
|
-1%
|
|
11%
|
SOLIDWORKS software revenue
|
|
-1%
|
|
13%
|
Other software revenue
|
|
9%
|
|
17%
|
IFRS Revenue by geography
|
|
|
|
|
Americas
|
|
-4%
|
|
11%
|
Europe
|
|
2%
|
|
6%
|
Asia
|
|
6%
|
|
15%
|
*Variation compared to the same period in the prior year. **In constant
currencies
IAS 18
DASSAULT SYSTEMES
CONDENSED CONSOLIDATED BALANCE SHEETS (IFRS)
(unaudited; in millions of Euros)
|
|
|
|
|
|
In millions of Euros
|
|
March 31,
|
|
December 31,
|
|
|
2018
|
|
2017
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Cash and cash equivalents
|
|
2,803.8
|
|
2,459.4
|
Short-term investments
|
|
41.3
|
|
1.3
|
Accounts receivable, net
|
|
749.7
|
|
895.9
|
Other current assets
|
|
215.1
|
|
242.9
|
Total current assets
|
|
3,809.9
|
|
3,599.5
|
Property and equipment, net
|
|
164.4
|
|
169.0
|
Goodwill and Intangible assets, net
|
|
2,899.2
|
|
2,990.1
|
Other non-current assets
|
|
287.6
|
|
271.2
|
Total Assets
|
|
€ 7,161.1
|
|
€ 7,029.8
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
Accounts payable
|
|
128.9
|
|
149.3
|
Unearned revenues
|
|
1,001.0
|
|
876.4
|
Other current liabilities
|
|
457.0
|
|
501.7
|
Total current liabilities
|
|
1,586.9
|
|
1,527.4
|
Long-term debt
|
|
1,000.0
|
|
1,000.0
|
Other non-current obligations
|
|
499.4
|
|
506.3
|
Total long-term liabilities
|
|
1,499.4
|
|
1,506.3
|
Non-controlling interests
|
|
1.6
|
|
1.9
|
Parent shareholders' equity
|
|
4,073.2
|
|
3,994.2
|
Total Liabilities and Shareholders' equity
|
|
€ 7,161.1
|
|
€ 7,029.8
|
|
|
|
|
|
IAS 18
DASSAULT SYSTEMES
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (IFRS)
|
|
|
|
In millions of Euros
|
|
Three months ended
|
|
|
March 31, 2018
|
|
March 31, 2017
|
|
Change
|
Net Income attributable to equity holders of the parent
|
|
100.8
|
|
85.0
|
|
15.8
|
Non-controlling interest
|
|
(0.3)
|
|
1.4
|
|
(1.7)
|
Net Income
|
|
100.5
|
|
86.4
|
|
14.1
|
Depreciation of property & equipment
|
|
13.7
|
|
11.7
|
|
2.0
|
Amortization of intangible assets
|
|
43.9
|
|
43.3
|
|
0.6
|
Other non cash P&L items
|
|
16.7
|
|
7.8
|
|
8.9
|
Changes in working capital
|
|
232.1
|
|
198.6
|
|
33.5
|
Net Cash provided by operating activities
|
|
€ 406.9
|
|
€ 347.8
|
|
€ 59.1
|
|
|
|
|
|
|
|
Additions to property, equipment and intangibles
|
|
(11.9)
|
|
(18.3)
|
|
6.4
|
Payments for acquisition of businesses, net of cash acquired
|
|
-
|
|
(0.4)
|
|
0.4
|
Sale (purchase) of short term investments, net
|
|
(40.1)
|
|
(8.8)
|
|
(31.3)
|
Investments, loans and others
|
|
(0.1)
|
|
6.3
|
|
(6.4)
|
Net Cash provided by (used in) investing activities
|
|
(€ 52.1)
|
|
(€ 21.2)
|
|
(€ 30.9)
|
|
|
|
|
|
|
|
Acquisition of non-controlling interests
|
|
-
|
|
-
|
|
-
|
(Purchase) Sale of treasury stock
|
|
8.4
|
|
3.1
|
|
5.3
|
Proceeds from exercise of stock-options
|
|
12.3
|
|
5.3
|
|
7.0
|
Cash dividend paid
|
|
-
|
|
-
|
|
-
|
Net Cash provided by (used in) financing activities
|
|
€ 20.7
|
|
€ 8.4
|
|
€ 12.3
|
|
|
|
|
|
|
|
Effect of exchange rate changes on
cash and cash equivalents
|
|
(31.1)
|
|
(6.3)
|
|
(24.8)
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
€ 344.4
|
|
€ 328.7
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period
|
|
€ 2,459.4
|
|
€ 2,436.7
|
|
|
Cash and cash equivalents at end of period
|
|
€ 2,803.8
|
|
€ 2,765.4
|
|
|
|
|
|
|
|
|
|
IAS 18
DASSAULT SYSTEMES SUPPLEMENTAL NON-IFRS FINANCIAL
INFORMATION IFRS - NON-IFRS RECONCILIATION (unaudited;
in millions of Euros, except per share data)
Readers are cautioned that the supplemental non-IFRS information
presented in this press release is subject to inherent limitations. It
is not based on any comprehensive set of accounting rules or principles
and should not be considered as a substitute for IFRS measurements.
Also, the Company's supplemental non-IFRS financial information may not
be comparable to similarly titled non-IFRS measures used by other
companies. Further specific limitations for individual non-IFRS
measures, and the reasons for presenting non-IFRS financial information,
are set forth in the Company's Document de référence for the year
ended December 31, 2017 filed with the AMF on March 21, 2018. To
compensate for these limitations, the supplemental non-IFRS financial
information should be read not in isolation, but only in conjunction
with the Company's consolidated financial statements prepared in
accordance with IFRS.
In millions of Euros, except per share data and percentages
|
|
Three months ended March 31,
|
|
Change
|
|
|
2018
|
|
Adjustment (1)
|
|
2018
|
|
2017
|
|
Adjustment (1)
|
|
2017
|
|
IFRS
|
|
Non-IFRS (2)
|
|
|
IFRS
|
|
|
|
Non-IFRS
|
|
IFRS
|
|
|
|
Non-IFRS
|
|
|
|
|
Total Revenue IAS18
|
|
€ 769.3
|
|
€ 1.9
|
|
€ 771.2
|
|
€ 759.8
|
|
€ 5.9
|
|
€ 765.7
|
|
1%
|
|
1%
|
Total Revenue IAS18 breakdown by activity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software revenue
|
|
685.7
|
|
1.9
|
|
687.6
|
|
670.2
|
|
5.9
|
|
676.1
|
|
2%
|
|
2%
|
Licenses and other software revenue
|
|
180.5
|
|
|
|
180.5
|
|
173.0
|
|
|
|
173.0
|
|
4%
|
|
4%
|
Subscription and Support revenue
|
|
505.3
|
|
1.9
|
|
507.2
|
|
497.2
|
|
5.9
|
|
503.2
|
|
2%
|
|
1%
|
Recurring portion of Software revenue
|
|
74%
|
|
|
|
74%
|
|
74%
|
|
|
|
74%
|
|
|
|
|
Services revenue
|
|
83.5
|
|
|
|
83.5
|
|
89.6
|
|
|
|
89.6
|
|
-7%
|
|
-7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Software Revenue IA18 breakdown by product line
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CATIA software revenue
|
|
236.9
|
|
|
|
236.9
|
|
236.4
|
|
|
|
236.4
|
|
0%
|
|
0%
|
ENOVIA software revenue
|
|
72.9
|
|
|
|
72.9
|
|
73.6
|
|
|
|
73.6
|
|
-1%
|
|
-1%
|
SOLIDWORKS software revenue
|
|
173.1
|
|
|
|
173.1
|
|
174.2
|
|
|
|
174.2
|
|
-1%
|
|
-1%
|
Other software revenue
|
|
202.8
|
|
1.9
|
|
204.7
|
|
186.0
|
|
5.9
|
|
191.9
|
|
9%
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue IAS18 breakdown by geography
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
224.3
|
|
0.9
|
|
225.2
|
|
233.9
|
|
1.9
|
|
235.8
|
|
-4%
|
|
-4%
|
Europe
|
|
326.1
|
|
0.4
|
|
326.5
|
|
319.4
|
|
3.7
|
|
323.1
|
|
2%
|
|
1%
|
Asia
|
|
218.8
|
|
0.6
|
|
219.4
|
|
206.5
|
|
0.4
|
|
206.9
|
|
6%
|
|
6%
|
Total Operating Expenses
|
|
(€ 639.9)
|
|
€ 77.1
|
|
(€ 562.8)
|
|
(€ 640.3)
|
|
€ 75.2
|
|
(€ 565.0)
|
|
0%
|
|
0%
|
Share-based compensation expense
|
|
(32.8)
|
|
32.8
|
|
-
|
|
(27.9)
|
|
27.9
|
|
-
|
|
|
|
|
Amortization of acquired intangibles
|
|
(41.8)
|
|
41.8
|
|
-
|
|
(41.2)
|
|
41.2
|
|
-
|
|
|
|
|
Other operating income and expense, net
|
|
(2.5)
|
|
2.5
|
|
-
|
|
(6.1)
|
|
6.1
|
|
-
|
|
|
|
|
Operating Income
|
|
€ 129.3
|
|
€ 79.0
|
|
€ 208.3
|
|
€ 119.5
|
|
€ 81.2
|
|
€ 200.7
|
|
8%
|
|
4%
|
Operating Margin
|
|
16.8%
|
|
|
|
27.0%
|
|
15.7%
|
|
|
|
26.2%
|
|
|
|
|
Financial revenue & other, net
|
|
4.7
|
|
0.5
|
|
5.2
|
|
7.2
|
|
(6.7)
|
|
0.6
|
|
-35%
|
|
851%
|
Income tax expense
|
|
(33.5)
|
|
(28.2)
|
|
(61.6)
|
|
(40.3)
|
|
(23.8)
|
|
(64.1)
|
|
-17%
|
|
-4%
|
Non-controlling interest
|
|
0.3
|
|
|
|
0.3
|
|
(1.4)
|
|
|
|
(1.4)
|
|
-121%
|
|
-121%
|
Net Income attributable to shareholders
|
|
€ 100.8
|
|
€ 51.4
|
|
€ 152.2
|
|
€ 85.0
|
|
€ 50.7
|
|
€ 135.7
|
|
19%
|
|
12%
|
Diluted Net Income Per Share (3)
|
|
€ 0.39
|
|
€ 0.20
|
|
€ 0.59
|
|
€ 0.33
|
|
€ 0.20
|
|
€ 0.53
|
|
18%
|
|
11%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)In the reconciliation schedule above, (i) all adjustments to IFRS
revenue data reflect the exclusion of the deferred revenue adjustment of
acquired companies; (ii) adjustments to IFRS operating expense data
reflect the exclusion of the amortization of acquired intangibles,
share-based compensation expense and related social charges, and other
operating income and expense, (iii) adjustments to IFRS financial
revenue and other, net reflect the exclusion of certain one-time items
included in financial revenue and other, net, and (iv) all adjustments
to IFRS income data reflect the combined effect of these adjustments,
plus for net income and diluted net income per share, certain one-time
tax effects and the income tax effect of the non-IFRS adjustments.
|
|
Three months ended March 31,
|
In millions of Euros
|
|
2018 IFRS
|
|
Adjustment
|
|
2018
|
|
2017 IFRS
|
|
Adjustment
|
|
2017
|
|
|
|
|
|
|
Non-IFRS
|
|
|
|
|
|
Non-IFRS
|
Cost of revenue
|
|
(120.3)
|
|
1.0
|
|
(119.3)
|
|
(123.3)
|
|
1.1
|
|
(122.2)
|
Research and development
|
|
(152.7)
|
|
12.2
|
|
(140.4)
|
|
(149.7)
|
|
11.8
|
|
(137.9)
|
Marketing and sales
|
|
(253.0)
|
|
6.4
|
|
(246.6)
|
|
(259.8)
|
|
9.2
|
|
(250.5)
|
General and administrative
|
|
(69.7)
|
|
13.2
|
|
(56.5)
|
|
(60.3)
|
|
5.9
|
|
(54.4)
|
Total share-based compensation expense
|
|
|
|
€ 32.8
|
|
|
|
|
|
€ 27.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) The non-IFRS percentage increase (decrease) compares non-IFRS
measures for the two different periods. In the event there is non-IFRS
adjustment to the relevant measure for only one of the periods under
comparison, the non-IFRS increase (decrease) compares the non-IFRS
measure to the relevant IFRS measure.
(3) Based on a weighted average 259.3 million diluted shares for Q1 2018
and 257.3 million diluted shares for Q1 2017.
Summary of Principal Differences of IFRS 15 Compared to IAS 18
The Company has adopted IFRS 15 as of January 1, 2018 using the modified
retrospective transition method (also called the cumulative effect
method). Under this method, the transition effect is accounted for
within the consolidated equity at the date of initial application, i.e.
January 1, 2018, without any adjustment to the prior year comparative
information. See also the Company's 2017 Document de Référence
(Annual Report) for further information.
-
Recurring software: Recurring software is comprised of
subscription and support revenue. IFRS 15 has an impact on the timing
of the quarterly recognition of subscription revenue but on a full
year basis there is essentially no difference between IFRS 15 and IAS
18 for subscription contracts of one year in length. For the 2018
first quarter, recurring software revenue was €557.9 million under
IFRS 15 and was €50.8 million higher compared to the prior IAS 18
standard. Previously, under IAS 18, we showed a ratable quarterly
amount based upon the annual contract level of our on-premise
subscription software. Under IFRS 15, for new contracts entered into
or for contracts renewing, we have assigned an upfront value as
required which is recognized in the first quarter of the contract, and
the remainder which is recognized ratably during the four quarters. We
continue to report both of these amounts within recurring revenue,
specifically as subscription revenue (previously called periodic
revenue). Historically, a higher proportion of subscription contracts
are renewed in the first quarter of the year than in the other three
quarters of the year.
-
Operating expenses and sales commissions: The Company continues
to expense sales commissions under the IFRS 15 standard as was done
under IAS 18. Therefore, there are no capitalized sales commissions.
As a result, the Company's operating expenses are identical under IFRS
15 and IAS 18.
-
One-time permanent difference: The implementation of IFRS 15 on
January 1, 2018 resulted in a one-time permanent difference between
IFRS 15 and IAS 18, where the deferred portion of rental agreements
concluded in prior years will not be recognized into revenue. As a
result, the corresponding amount of €80 million, net of taxes
(€110 million before) was recorded in stockholders' equity as of
January 1, 2018.
-
Initial impact on unearned revenue: At March 31, 2018 unearned
revenue on the Balance Sheet under IFRS 15 is not directly comparable
to the year-ago March 31, 2017 balance sheet under the prior standard
IAS 18. This is due to the fact that the March 31, 2018 balance sheet
line item unearned revenue has been reduced by €158 million,
reflecting mainly (i) the one-time permanent difference of €110
million, and (ii) the higher amount of recurring revenue recognized in
the first quarter under IFRS 15 compared to IAS 18 in the amount of
€49.4 million.
DASSAULT SYSTEMES
RECONCILIATION P&L NON-IFRS IAS 18 vs IFRS 15
(unaudited; in millions of Euros)
|
|
|
|
|
|
In millions of Euros, except per share data and percentages
|
|
2018 Non-IFRS
|
|
|
QTD
|
|
Difference
|
|
QTD
|
|
|
IFRS15
|
|
|
|
IAS18
|
Total Revenue
|
|
€ 820.6
|
|
(€ 49.4)
|
|
€ 771.2
|
Total Revenue breakdown by activity
|
|
|
|
|
|
|
Software revenue
|
|
737.0
|
|
(49.4)
|
|
687.6
|
Licenses and Other software revenue
|
|
179.1
|
|
1.4
|
|
180.5
|
Subscription and Support revenue
|
|
557.9
|
|
(50.8)
|
|
507.2
|
Recurring portion of Software revenue
|
|
76%
|
|
(0.0)
|
|
74%
|
Services revenue
|
|
83.5
|
|
|
|
83.5
|
|
|
|
|
|
|
|
Total Software Revenue breakdown by product line
|
|
|
|
|
|
|
CATIA software revenue
|
|
250.7
|
|
(13.8)
|
|
236.9
|
ENOVIA software revenue
|
|
74.7
|
|
(1.8)
|
|
72.9
|
SOLIDWORKS software revenue
|
|
169.9
|
|
3.2
|
|
173.1
|
Other software revenue
|
|
241.7
|
|
(37.0)
|
|
204.7
|
|
|
|
|
|
|
|
Total Revenue breakdown by geography
|
|
|
|
|
|
|
Americas
|
|
239.0
|
|
(13.8)
|
|
225.2
|
Europe
|
|
362.6
|
|
(36.1)
|
|
326.5
|
Asia
|
|
219.0
|
|
0.4
|
|
219.4
|
Total Operating Expenses
|
|
(€ 562.8)
|
|
|
|
(€ 562.8)
|
Share-based compensation expense
|
|
-
|
|
|
|
-
|
Amortization of acquired intangibles
|
|
-
|
|
|
|
-
|
Other operating income and expense, net
|
|
-
|
|
|
|
-
|
Operating Income
|
|
€ 257.8
|
|
(€ 49.4)
|
|
€ 208.3
|
Operating Margin
|
|
31.4%
|
|
-4.4pts
|
|
27.0%
|
Financial revenue & other, net
|
|
5.2
|
|
|
|
5.2
|
Income tax expense
|
|
(75.6)
|
|
14.0
|
|
(61.6)
|
Non-controlling interest
|
|
0.3
|
|
|
|
0.3
|
Net Income attributable to shareholders
|
|
€ 187.6
|
|
(€ 35.4)
|
|
€ 152.2
|
Diluted Net Income Per Share
|
|
€ 0.72
|
|
(€ 0.13)
|
|
€ 0.59
|
|
|
|
|
|
|
|
|
|
2018 Non-IFRS
|
In millions of Euros
|
|
2018
|
|
Difference
|
|
2018
|
|
|
IFRS15
|
|
|
|
IAS18
|
Cost of revenue
|
|
(119.3)
|
|
|
|
(119.3)
|
Research and development
|
|
(140.4)
|
|
|
|
(140.4)
|
Marketing and sales
|
|
(246.6)
|
|
|
|
(246.6)
|
General and administrative
|
|
(56.5)
|
|
|
|
(56.5)
|
|
|
|
|
|
|
|
DASSAULT SYSTEMES
RECONCILIATION BALANCE SHEET NON-IFRS IAS 18 vs IFRS 15
(unaudited; in millions of Euros)
|
|
|
|
|
|
|
In millions of Euros
|
|
IFRS15 Basis
|
|
|
IAS 18 Basis
|
|
|
March 31,
|
|
Difference
|
|
March 31,
|
|
|
2018
|
|
|
|
2018
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
2,803.8
|
|
-
|
|
2,803.8
|
Short-term investments
|
|
41.3
|
|
-
|
|
41.3
|
Accounts receivable, net
|
|
749.7
|
|
-
|
|
749.7
|
Other current assets
|
|
215.1
|
|
-
|
|
215.1
|
Total current assets
|
|
3,809.9
|
|
-
|
|
3,809.9
|
Property and equipment, net
|
|
164.4
|
|
-
|
|
164.4
|
Goodwill and Intangible assets, net
|
|
2,899.2
|
|
-
|
|
2,899.2
|
Other non-current assets
|
|
273.3
|
|
14.3
|
|
287.6
|
Total Assets
|
|
€ 7,146.8
|
|
€ 14.3
|
|
€ 7,161.1
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Accounts payable
|
|
128.9
|
|
-
|
|
128.9
|
Contract liabilities - Unearned revenues
|
|
842.8
|
|
158.2
|
|
1,001.0
|
Other current liabilities
|
|
486.2
|
|
(29.2)
|
|
457.0
|
Total current liabilities
|
|
1,457.9
|
|
129.0
|
|
1,586.9
|
Long-term debt
|
|
1,000.0
|
|
-
|
|
1,000.0
|
Other non-current obligations
|
|
499.4
|
|
-
|
|
499.4
|
Total long-term liabilities
|
|
1,499.4
|
|
-
|
|
1,499.4
|
Non-controlling interests
|
|
1.6
|
|
-
|
|
1.6
|
Parent shareholders' equity
|
|
4,187.9
|
|
(114.7)
|
|
4,073.2
|
Total Liabilities and Shareholders' equity
|
|
€ 7,146.8
|
|
€ 14.3
|
|
€ 7,161.1
|
|
|
|
|
|
|
|
DASSAULT SYSTEMES
RECONCILIATION CASH FLOW NON-IFRS IAS 18 vs IFRS 15
(unaudited; in millions of Euros)
|
|
|
|
In millions of Euros
|
|
Three months ended March 31, 2018
|
|
|
IFRS 15
|
|
Difference
|
|
IAS 18
|
Net Income attributable to equity holders of the parent
|
|
136.3
|
|
(35.5)
|
|
100.8
|
Non-controlling interest
|
|
(0.3)
|
|
0.0
|
|
(0.3)
|
Net Income
|
|
136.0
|
|
(35.5)
|
|
100.5
|
Depreciation of property & equipment
|
|
13.7
|
|
-
|
|
13.7
|
Amortization of intangible assets
|
|
43.9
|
|
-
|
|
43.9
|
Other non cash P&L items
|
|
16.7
|
|
-
|
|
16.7
|
Changes in working capital
|
|
196.6
|
|
35.5
|
|
232.1
|
Net Cash provided by operating activities
|
|
€ 406.9
|
|
€ 0.0
|
|
€ 406.9
|
|
|
|
|
|
|
|
Additions to property, equipment and intangibles
|
|
(11.9)
|
|
-
|
|
(11.9)
|
Payments for acquisition of businesses, net of cash acquired
|
|
-
|
|
-
|
|
-
|
Sale (purchase) of short term investments, net
|
|
(40.1)
|
|
-
|
|
(40.1)
|
Investments, loans and others
|
|
(0.1)
|
|
-
|
|
(0.1)
|
Net Cash provided by (used in) investing activities
|
|
(€ 52.1)
|
|
€ 0.0
|
|
(€ 52.1)
|
|
|
|
|
|
|
|
(Purchase) Sale of treasury stock
|
|
8.4
|
|
-
|
|
8.4
|
Proceeds from exercise of stock-options
|
|
12.3
|
|
-
|
|
12.3
|
Net Cash provided by (used in) financing activities
|
|
€ 20.7
|
|
€ 0.0
|
|
€ 20.7
|
|
|
|
|
|
|
|
Effect of exchange rate changes on
cash and cash equivalents
|
|
(31.1)
|
|
0.0
|
|
(31.1)
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
€ 344.4
|
|
€ 0.0
|
|
€ 344.4
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period
|
|
€ 2,459.4
|
|
€ 0.0
|
|
€ 2,459.4
|
Cash and cash equivalents at end of period
|
|
€ 2,803.8
|
|
€ 0.0
|
|
€ 2,803.8
|
|
|
|
|
|
|
|
IFRS 15
DASSAULT SYSTEMES
NON-IFRS IFRS 15 FINANCIAL INFORMATION
(unaudited; in millions of Euros, except per share data, headcount
and exchange rates)
|
|
|
|
In millions of Euros, except per share data and percentages
|
|
Three months ended
|
|
|
March 31, 2018
|
Non-IFRS-IFRS15 Revenue
|
|
€ 820.6
|
|
|
|
Non-IFRS-IFRS15 Revenue breakdown by activity
|
|
|
Software revenue
|
|
737.0
|
of which licenses and other software revenue
|
|
179.1
|
of which subscription and support revenue
|
|
557.9
|
Services revenue
|
|
83.5
|
|
|
|
Non-IFRS-IFRS15 software revenue breakdown by product line
|
|
|
CATIA software revenue
|
|
250.7
|
ENOVIA software revenue
|
|
74.7
|
SOLIDWORKS software revenue
|
|
169.9
|
Other software revenue
|
|
241.7
|
|
|
|
Non-IFRS-IFRS15 Revenue breakdown by geography
|
|
|
Americas
|
|
239.0
|
Europe
|
|
362.6
|
Asia
|
|
219.0
|
|
|
|
Non-IFRS-IFRS15 operating income
|
|
€ 257.8
|
Non-IFRS-IFRS15 operating margin
|
|
31.4%
|
Non-IFRS net income attributable to shareholders
|
|
€ 187.6
|
Non-IFRS-IFRS15 diluted net income per share
|
|
€ 0.72
|
Closing headcount
|
|
16,067
|
|
|
|
Average Rate USD per Euro
|
|
1.23
|
Average Rate JPY per Euro
|
|
133.2
|
|
|
|
IFRS 15
DASSAULT SYSTEMES
CONDENSED CONSOLIDATED STATEMENT OF INCOME (IFRS)
(unaudited; in millions of Euros, except per share data)
|
|
|
|
In millions of Euros, except per share data and percentages
|
|
Three months ended
|
|
|
March 31,
|
|
|
2018
|
Licenses and Other software revenue
|
|
179.1
|
Subscription and Support revenue
|
|
556.0
|
Software revenue
|
|
735.1
|
Services revenue
|
|
83.5
|
Total Revenue IFRS15
|
|
€ 818.7
|
Cost of software revenue (excluding amortization of acquired
intangibles)
|
|
(40.9)
|
Cost of services and other revenue
|
|
(79.4)
|
Research and development
|
|
(152.7)
|
Marketing and sales
|
|
(253.0)
|
General and administrative
|
|
(69.7)
|
Amortization of acquired intangibles
|
|
(41.8)
|
Other operating income and expense, net
|
|
(2.5)
|
Total Operating Expenses
|
|
(639.9)
|
Operating Income
|
|
€ 178.7
|
Financial revenue and other, net
|
|
4.7
|
Income before income taxes
|
|
183.5
|
Income tax expense
|
|
(47.5)
|
Net Income
|
|
€ 136.0
|
Non-controlling interest
|
|
0.3
|
Net Income attributable to equity holders of the parent
|
|
€ 136.3
|
Basic net income per share
|
|
0.53
|
Diluted net income per share
|
|
€ 0.53
|
Basic weighted average shares outstanding (in millions)
|
|
256.9
|
Diluted weighted average shares outstanding (in millions)
|
|
259.3
|
|
|
|
IFRS 15
DASSAULT SYSTEMES
CONDENSED CONSOLIDATED BALANCE SHEET (IFRS)
(unaudited; in millions of Euros)
|
|
|
|
In millions of Euros
|
|
March 31,
|
|
|
2018
|
|
|
|
ASSETS
|
|
|
Cash and cash equivalents
|
|
2,803.8
|
Short-term investments
|
|
41.3
|
Accounts receivable, net
|
|
749.7
|
Other current assets
|
|
215.1
|
Total current assets
|
|
3,809.9
|
Property and equipment, net
|
|
164.4
|
Goodwill and Intangible assets, net
|
|
2,899.2
|
Other non-current assets
|
|
273.3
|
Total Assets
|
|
€ 7,146.8
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
Accounts payable
|
|
128.9
|
Contract liabilities
|
|
842.8
|
Short-term debt
|
|
0.0
|
Other current liabilities
|
|
486.2
|
Total current liabilities
|
|
1,457.9
|
Long-term debt
|
|
1,000.0
|
Other non-current obligations
|
|
499.4
|
Total long-term liabilities
|
|
1,499.4
|
Non-controlling interests
|
|
1.6
|
Parent shareholders' equity
|
|
4,187.9
|
Total Liabilities and Shareholders' equity
|
|
€ 7,146.8
|
|
|
|
IFRS 15
DASSAULT SYSTEMES
CONDENSED CONSOLIDATED CASH FLOW STATEMENT (IFRS)
|
|
|
|
In millions of Euros
|
|
Three months ended
|
|
|
March 31, 2018
|
Net Income attributable to equity holders of the parent
|
|
136.3
|
Non-controlling interest
|
|
(0.3)
|
Net Income
|
|
136.0
|
Depreciation of property & equipment
|
|
13.7
|
Amortization of intangible assets
|
|
43.9
|
Other non cash P&L items
|
|
16.7
|
Changes in working capital
|
|
196.6
|
Net Cash provided by operating activities
|
|
€ 406.9
|
|
|
|
Additions to property, equipment and intangibles
|
|
(11.9)
|
Payments for acquisition of businesses, net of cash acquired
|
|
-
|
Sale (purchase) of short term investments, net
|
|
(40.1)
|
Investments, loans and others
|
|
(0.1)
|
Net Cash provided by (used in) investing activities
|
|
(€ 52.1)
|
|
|
|
Acquisition of non-controlling interests
|
|
-
|
(Purchase) Sale of treasury stock
|
|
8.4
|
Proceeds from exercise of stock-options
|
|
12.3
|
Cash dividend paid
|
|
-
|
Net Cash provided by (used in) financing activities
|
|
€ 20.7
|
|
|
|
Effect of exchange rate changes on
cash and cash equivalents
|
|
(31.1)
|
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
€ 344.4
|
|
|
|
Cash and cash equivalents at beginning of period
|
|
€ 2,459.4
|
Cash and cash equivalents at end of period
|
|
€ 2,803.8
|
|
|
|
IFRS 15
DASSAULT SYSTEMES
SUPPLEMENTAL NON-IFRS FINANCIAL INFORMATION
IFRS - NON-IFRS RECONCILIATION
(unaudited; in millions of Euros, except per share data)
Readers are cautioned that the supplemental non-IFRS information
presented in this press release is subject to inherent limitations. It
is not based on any comprehensive set of accounting rules or principles
and should not be considered as a substitute for IFRS measurements.
Also, the Company's supplemental non-IFRS financial information may not
be comparable to similarly titled non-IFRS measures used by other
companies. Further specific limitations for individual non-IFRS
measures, and the reasons for presenting non-IFRS financial information,
are set forth in the Company's Document de référence for the year
ended December 31, 2017 filed with the AMF on March 21, 2018. To
compensate for these limitations, the supplemental non-IFRS financial
information should be read not in isolation, but only in conjunction
with the Company's consolidated financial statements prepared in
accordance with IFRS.
In millions of Euros, except per share data and percentages
|
|
Three months ended March 31,
|
|
|
2018
|
|
Adjustment (1)
|
|
2018
|
|
|
IFRS
|
|
|
|
Non-IFRS
|
Total Revenue IFRS15
|
|
€ 818.7
|
|
€ 1.9
|
|
€ 820.6
|
Total Revenue IFRS15 breakdown by activity
|
|
|
|
|
|
|
Software revenue
|
|
735.1
|
|
1.9
|
|
737.0
|
Licenses and Other software revenue
|
|
179.1
|
|
|
|
179.1
|
Subscription and Support revenue
|
|
556.0
|
|
1.9
|
|
557.9
|
Recurring portion of Software revenue
|
|
76%
|
|
|
|
76%
|
Services revenue
|
|
83.5
|
|
|
|
83.5
|
|
|
|
|
|
|
|
Total Software Revenue IFRS15 breakdown by product line
|
|
|
|
|
|
|
CATIA software revenue
|
|
250.7
|
|
|
|
250.7
|
ENOVIA software revenue
|
|
74.7
|
|
|
|
74.7
|
SOLIDWORKS software revenue
|
|
169.9
|
|
|
|
169.9
|
Other software revenue
|
|
239.8
|
|
1.9
|
|
241.7
|
Total Revenue IFRS15 breakdown by geography
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
238.1
|
|
0.9
|
|
239.0
|
Europe
|
|
362.2
|
|
0.4
|
|
362.6
|
Asia
|
|
218.4
|
|
0.6
|
|
219.0
|
Total Operating Expenses
|
|
(€ 639.9)
|
|
€ 77.1
|
|
(€ 562.8)
|
Share-based compensation expense
|
|
(32.8)
|
|
32.8
|
|
-
|
Amortization of acquired intangibles
|
|
(41.8)
|
|
41.8
|
|
-
|
Other operating income and expense, net
|
|
(2.5)
|
|
2.5
|
|
-
|
Operating Income
|
|
€ 178.7
|
|
€ 79.0
|
|
€ 257.8
|
Operating Margin
|
|
21.8%
|
|
|
|
31.4%
|
Financial revenue & other, net
|
|
4.7
|
|
0.5
|
|
5.2
|
Income tax expense
|
|
(47.5)
|
|
(28.2)
|
|
(75.6)
|
Non-controlling interest
|
|
0.3
|
|
|
|
0.3
|
Net Income attributable to shareholders
|
|
€ 136.3
|
|
€ 51.4
|
|
€ 187.6
|
Diluted Net Income Per Share (3)
|
|
€ 0.53
|
|
€ 0.20
|
|
€ 0.72
|
|
|
|
|
|
|
|
(1)In the reconciliation schedule above, (i) all adjustments to IFRS
revenue data reflect the exclusion of the deferred revenue adjustment of
acquired companies; (ii) adjustments to IFRS operating expense data
reflect the exclusion of the amortization of acquired intangibles,
share-based compensation expense and related social charges, and other
operating income and expense, (iii) adjustments to IFRS financial
revenue and other, net reflect the exclusion of certain one-time items
included in financial revenue and other, net, and (iv) all adjustments
to IFRS income data reflect the combined effect of these adjustments,
plus for net income and diluted net income per share, the income tax
effect of the non-IFRS adjustments.
|
|
Three months ended March 31,
|
In millions of Euros
|
|
2018 IFRS
|
|
Adjustment
|
|
2018
|
|
|
|
|
|
|
Non-IFRS
|
Cost of revenue
|
|
(120.3)
|
|
1.0
|
|
(119.3)
|
Research and development
|
|
(152.7)
|
|
12.2
|
|
(140.4)
|
Marketing and sales
|
|
(253.0)
|
|
6.4
|
|
(246.6)
|
General and administrative
|
|
(69.7)
|
|
13.2
|
|
(56.5)
|
Total share-based compensation expense
|
|
|
|
€ 32.8
|
|
|
|
|
|
|
|
|
|
(2) The non-IFRS percentage increase (decrease) compares non-IFRS
measures for the two different periods. In the event there is non-IFRS
adjustment to the relevant measure for only one of the periods under
comparison, the non-IFRS increase (decrease) compares the non-IFRS
measure to the relevant IFRS measure.
(3) Based on a weighted average 259.3 million diluted shares for Q1 2018
and 257.3 million diluted shares for Q1 2017.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180424006630/en/
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